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View Full Version : News NFL Owners set up to survive 2 year lockout


reschief
02-28-2011, 03:58 PM
Chris Isidore, senior writerFebruary 28, 2011: 4:27 PM ET


NEW YORK (CNNMoney) -- National Football League owners will continue to generate much of their revenue in 2011, even if next season's games are cancelled due to a labor dispute, according to a note Monday by rating agency Standard & Poor's.

In fact, some teams may be able to survive two years without any games being played, according to S&P, which said it has confidential debt ratings on various stadium bonds for facilities used by NFL teams and also tracks teams' finances.

0Email Print CommentIf there is a work stoppage, the owners will have to pay most of the money they receive in 2001 back with interest once games resume.

But the continued flow of money from television networks, sponsors and some customers during a possible lockout puts the owners in good position to weather a potential canceled season.

The owners and the NFL Players Association are in negotiations on a new collective bargaining agreement ahead of a Friday deadline. Without an agreement, a lockout of players could start that day.

Even though there are no games scheduled to be played until September, there are fears that the 2011 season could be lost as the league and players fight over how much revenue should be available to players.


0:00 /1:57Cowboys Stadium keeps eatery afloat
Citing the ongoing talks, a spokeswoman for the NFLPA declined to comment on the S&P report. Spokesmen for the NFL did not immediately respond to a request for comment.

S&P said the league's estimated revenue was about $9 billion last year, with the biggest share of that money coming from television rights deals, which it said will provide it with $4 billion in revenue in 2011.

The networks will be contractually required to pay that money to the league even if the games are not played, although the league will have to pay that money back to the networks, with interest, once games resume.

But that revenue stream, which S&P said is being challenged in court by the union, is an important source of funds that would help the owners avoid any default on their own obligations.

S&P also estimates that 50% to 80% of stadium revenues are generated from what it terms "contractually obligated income" from the sale of luxury suites, club seats, and in-stadium advertising.

The contract provisions typically require payment even if football games are not played, although once again, some of this revenue would need to be repaid once the games resume.

In judging the owners' ability to survive a prolonged lockout, S&P also cited a report in trade publication Sports Business Journal, that the league has built up a strategic reserve fund of about $900 million that teams can access in case of a work stoppage.

gblowfish
02-28-2011, 04:00 PM
So...they're going to keep my 2011 season ticket payment for two years?
Great.
Just great...

Dicky McElephant
02-28-2011, 04:06 PM
Fuck everyone involved in this deal.

Cave Johnson
02-28-2011, 04:07 PM
Big Red doesn't give a sheeeit about the 2011 season, players.

reschief
02-28-2011, 04:07 PM
So...they're going to keep my 2011 season ticket payment for two years?
Great.
Just great...

. . . and they get the tv revenue & probably a nice low interest rate to repay it when its all over. . .knowing the players can only survive so long with last year's Escalade model . . .

philfree
02-28-2011, 04:20 PM
The owners are obviously getting together all thier funds so they can buy tickets to get on the Arc which they'll be boarding sometime in May. Just about the time the New Madrid Fault bust loose.


PhilFree:arrow:

FringeNC
02-28-2011, 04:22 PM
First sentence is misleading. The NFL won't be generating revenue, they will be treating the networks as a bank to borrow from. Sure, it gives them a little leverage, but it's not as if their net wealths won't be majorly adversely affected.

michaelj_58
02-28-2011, 04:24 PM
and where's that?

BigMeatballDave
02-28-2011, 04:25 PM
Fuck everyone involved in this deal.No kidding. 2 yrs would be devastating.

Mr. Laz
02-28-2011, 04:27 PM
First sentence is misleading. The NFL won't be generating revenue, they will be treating the networks as a bank to borrow from. Sure, it gives them a little leverage, but it's not as if their net wealths won't be majorly adversely affected.
This

How in the hell is the union challenging an agreement between the owners and network?

'But that revenue stream, which S&P said is being challenged in court by the union'

reschief
02-28-2011, 04:28 PM
First sentence is misleading. The NFL won't be generating revenue, they will be treating the networks as a bank to borrow from. Sure, it gives them a little leverage, but it's not as if their net wealths won't be majorly adversely affected.

Don't forget the $900 Mil reserve fund. . .these guys are ready for war. Nothing like a little planning & getting you contracts in place before hand. . . have to tip your hat to them on that no matter which side you're on. . .

InChiefsHell
02-28-2011, 04:34 PM
My God...the Middle East is on fire, there is political unrest all over this country, gas prices are rising...if I don't get my Chiefs this fall, I can't be responsible for what I might do...

DJ's left nut
02-28-2011, 04:35 PM
Bullshit.

If they holdout 2 years, the value of their franchises will be cut in half.

Sure, they're not going to starve to death. But I'm pretty sure Daniel Snyder has no interest in losing $500 million over a dick measuring contest.

Just posturing - nothing to see here.

DJ's left nut
02-28-2011, 04:37 PM
First sentence is misleading. The NFL won't be generating revenue, they will be treating the networks as a bank to borrow from. Sure, it gives them a little leverage, but it's not as if their net wealths won't be majorly adversely affected.

Yup, this continues to be mis-reported.

The networks are absolutely not just paying out to the NFL if there's no season. They're distributing money from a rainy day fund that they expect to be reimbursed for. Essentially, Fox, etc... will be bankrolling the lockout, but the owners are going to have to pay it back.

And when their franchise values are decimated due to fan unrest, I'm pretty sure the owners are going to wish they hadn't taken out that particular loan.

The owners are being shitheads and now they have their media cronies posturing (or outright lying) for them. It's pretty sickening.

reschief
02-28-2011, 04:50 PM
Bullshit.

If they holdout 2 years, the value of their franchises will be cut in half.

Sure, they're not going to starve to death. But I'm pretty sure Daniel Snyder has no interest in losing $500 million over a dick measuring contest.

Just posturing - nothing to see here.

I hope your right -they're "just posturing." But these guys have huge bucks & huge egos - and they believe the players got too good a deal last time. . .all adds up to . . . what I recall happened before in the late 80's . . . no games then, and even worse, replacement players. Yuck

gblowfish
02-28-2011, 04:58 PM
But I'm pretty sure Daniel Snyder has no interest in losing $500 million over a dick measuring contest.

Never EVER underestimate Daniel Snyder's ability to be an epic Mt. Rushmore sized DOUCHE.

philfree
02-28-2011, 05:26 PM
Just think of all the tax dollars spent on a stadium refurbishing by the fans and then try and justify these two sides not getting together and leaving that stadium empty. The fans should be able to sue both sides for all they're worth.


PhilFree:arrow:

Hog Farmer
02-28-2011, 05:27 PM
This is just more evidence that the people "IN The Know" are expecting planet Nibiru and the arrival of the Anunaki shortly. I hope you fat asses are working out cause pyramid building is hard work.

Der Flöprer
02-28-2011, 05:41 PM
I'm getting to the point where I don't give a shit. If they strike and we lose a season, I'm swearing off the NFL for 5 years at a minimum. College sports will be it for me. Baseball has never been the same for me since the strike, football won't either. I'm done with these greedy pricks.

Mr. Laz
02-28-2011, 05:55 PM
This is just more evidence that the people "IN The Know" are expecting planet Nibiru and the arrival of the Anunaki shortly. I hope you fat asses are working out cause pyramid building is hard work.
someone has been sampling the Hog pussy a bit too much

Fruit Ninja
02-28-2011, 06:13 PM
This is the last thing Godell wants on his watch. lol This would be an epic disaster for him.

teedubya
02-28-2011, 06:14 PM
This is just more evidence that the people "IN The Know" are expecting planet Nibiru and the arrival of the Anunaki shortly. I hope you fat asses are working out cause pyramid building is hard work.

It's not hard work when you have the anti-gravity tools, dumbass. ROFL

threebag02
02-28-2011, 06:17 PM
Bullshit.

If they holdout 2 years, the value of their franchises will be cut in half.

Sure, they're not going to starve to death. But I'm pretty sure Daniel Snyder has no interest in losing $500 million over a dick measuring contest.

Just posturing - nothing to see here.


When you own it all who worries about measuring dick?

Frazod
02-28-2011, 06:37 PM
My God...the Middle East is on fire, there is political unrest all over this country, gas prices are rising...if I don't get my Chiefs this fall, I can't be responsible for what I might do...

Fuck 'em. There are some awesome new video games coming out this year. Plus, if there is a season, the Chiefs are going to get beaten like a rented mule anyway. The schedule is absolutely brutal.

In fact, the only way we'll hang on to the division title for another year is if there is a strike, so bring it on, you greedy bastards!

Saul Good
02-28-2011, 06:46 PM
This is pure posturing. The owners are billionaires. They aren't going to starve, and they want to make sure the players know it.

I actually just had a thought. The players' union keeps bringing up the sob story about how the average career is only 4 years or something like that. The owners should threaten to blackball all of the players who don't break with the union. They could basically turn over half of the league in 2 years anyway.

KCBOSS1
02-28-2011, 08:18 PM
Obviously, they don't realize how fast people in this country will move on.

Hog Farmer
02-28-2011, 08:31 PM
It's not hard work when you have the anti-gravity tools, dumbass. ROFL

Until I've seen those "anti gravity tools" I'm working out.

milkman
02-28-2011, 08:49 PM
Listening to ESPN Radio this morning, they had Lester Munson on, ESPN legal analyst.

Essentially, to the best of my understanding, the decetification of the union is specifically to battle this.

After decertifying, if the owners lock the players out, the players will sue the owners.

They'll first attempt to get an injunction against the lockout, and if successful, all league business will resume.

After that, the league and players will essentially negotiate with a judge presiding over the negotiations, and the judge will make rulings that will be binding.

He also talked about the owners trying to get the law changed in the Supreme Court last year to make the decertification and lawsuit no longer an option.

Supreme Court ruled against the owners 9-0.

Over-Head
03-01-2011, 04:13 AM
Players = Millionaires (for the most part)
Owner = Billionairs

Who do ya think can sit this out for the longest??
The agents have the players priced outa jobs, and the owners for the last 10 or so years have been foolish enough to pay them.:rolleyes:

spanky 52
03-01-2011, 05:08 AM
Does anyone really believe the owner's would be willing to cancel football for two years? That would most likely kill their product. In this economy it would be suicide.

King_Chief_Fan
03-01-2011, 06:59 AM
This is pure posturing. The owners are billionaires. They aren't going to starve, and they want to make sure the players know it.

I actually just had a thought. The players' union keeps bringing up the sob story about how the average career is only 4 years or something like that. The owners should threaten to blackball all of the players who don't break with the union. They could basically turn over half of the league in 2 years anyway.

that isn't legal

Over-Head
03-01-2011, 07:57 AM
.... if there is a season, the Chiefs are going to get beaten like a rented mule anyway.
In fact, the only way we'll hang on to the division title for another year is if there is a strike

And your a Chiefs fan`:eek: ....hows the world look from the back of that band waggon :thumb:
Good lord man, your the AFCW champs for christ sakes. How about a little bit of support for your team dude